The effect of corporate taxes on investment and entrepreneurship
By: Simeon Djankov, Tim Ganser, Caralee McLiesh, Rita Ramalho, Andrei Shleifer.
Contributors: Djankov, Simeon.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 13756; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 13756.
Publisher: National Bureau of Economic Research
Published: 2008
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "We present new data on effective corporate income tax rates in 85 countries in 2004.  The data come from a survey, conducted jointly with PricewaterhouseCoopers, of all taxes imposed on "the same" standardized mid-size domestic firm.  In a cross-section of countries, our estimates of the effective corporate tax rate have a large adverse impact on aggregate investment, FDI, and entrepreneurial activity.  For example, a 10 percent increase in the effective corporate tax rate reduces aggregate investment to GDP ratio by 2 percentage points.  Corporate tax rates are also negatively correlated with growth, and positively correlated with the size of the informal economy.  The results are robust to the inclusion of controls for other tax rates, quality of tax administration, security of property rights, level of economic development, regulation, inflation, and openness to trade"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 6/12/2008.

Includes bibliographical references.

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